The Financial Services Council (FSC) views the current emphasis on personal finances and the longstanding call for increased financial literacy as positive developments for New Zealanders approaching election day.
“Financial wellbeing is top of mind for New Zealanders. With the cost-of-living tracking as the number one issue for voters, the finance sector remains committed to helping New Zealanders with their financial confidence and wellbeing,” FSC chief executive Richard Klipin said in a news release.
He also highlighted the FSC's monitoring of election developments to align with their outlined priorities in the Blueprint for Growth, launched the previous month.
“First of all, we applaud the outbreak of a bipartisan commitment to financial literacy being taught at all levels in our schools. To have both National and Labour committing to this is a game-changer. The FSC is ready to work with whoever forms the next government to make this a reality,” he said.
Klipin also said that the understanding displayed by all political parties regarding the cost-of-living pressures is beneficial for the citizens. Financial wellbeing stands as a vital aspect for all New Zealanders, and research recently launched by the FSC highlights the challenges faced by younger Kiwis in coping with current living costs, making it difficult to plan for future financial security.
The FSC welcomed sector-specific announcements, particularly reiterating their strong desire for a comprehensive review of KiwiSaver. The objective is to ensure that New Zealanders are receiving optimal returns to adequately prepare them for retirement.
In the regulatory sphere, the FSC and the financial services sector have worked on various legislation, including the Conduct of Financial Institutions (CoFI), Financial Services Legislation Amendment Act 2019 (FSLAA), and Climate Related Disclosures (CRD) over recent years.
“Our focus is always to do the right thing by consumers and CoFI is the policy process around addressing that,” Klipin said. “It's also the law of the land at the moment and we will continue to work with regulators and agencies as the law currently stands. Clearly, there's an election campaign going on, however the FSC is apolitical.”
Looking ahead, Klipin conveyed the FSC's anticipation for the forthcoming weeks as campaigning continues. They share the common goal of seeking policy enhancements that uplift financial wellbeing and look forward to collaborating with all parties to drive policies that make a tangible difference.
Financial literacy was reiterated as a key part of Labour’s agenda for the upcoming election, with the party unveiling plans to make financial literacy education compulsory beginning 2025 to address the low level of money and budgeting skills among recent graduates and young adult Kiwis.
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